Agreement between dealer and credit company for purchase by latter of notes and contracts.

To _________ commercial credit company:

We ask that you assist us in the sale and distribution of new and used passenger and commercial motor vehicles by the purchase from time to time of acceptable notes, chattel mortgages, conditional sale or lease contracts,  subsequently called instruments, representing deferred payments given to us by purchasers at retail of such new and used motor vehicles as evidence of the deferred balance due, the instruments to be purchased by you under your regular time sales plan in effect from time to time, but to be endorsed by us "without recourse."

In consideration of the purchase by you from us of acceptable instruments endorsed by us "without recourse," we agree that in the event of repossession of any motor vehicle covered by the instruments, either because of failure of the maker to pay the instruments or any installment on them, or because you deem such repossession necessary for your security, we will, upon demand by you, after such repossession, repurchase from you, wherever located, for cash such motor vehicles for the amount of the then unpaid balance of the instruments with interest after maturity. It is agreed that title to every such motor vehicle shall remain with you until you have received payment.

In cases where you are required by law to keep such motor vehicles for a specified period, during which the purchaser may redeem same, or for any other reason, and in those cases where such motor vehicles are held by or under the jurisdiction of any court or governmental agency for a period of time for any reason, we agree, if called upon by you to do so, to store such motor vehicles during the period without expense to you, and, as soon thereafter as you make demand upon us, we agree to repurchase same for cash from you as provided above.

We warrant and represent that each of the instruments will correctly describe the motor vehicle delivered to the purchaser named, and will correctly set forth the amount of the selling price and the amount of the initial payment made to us in cash and/or the amount allowed by us for other motor vehicles taken in trade, and that if any such instruments incorrectly state such or any other material facts, we will, upon demand, repurchase the instrument or instruments from you and pay you an amount equal to the unpaid balance of the instruments.

It is agreed that you will set up for us a reserve equal to _________ percent of the amount you pay us for instruments representing deferred payments on new cars, and _________ percent of the amount you pay us for instruments representing deferred payments on used cars. As of _________, _________, and _________ you will pay us from the reserve such amount as is in excess of _________ percent of the balance outstanding on instruments purchased from us under this agreement; provided that no payment need be made by you under this agreement so long as any indebtedness we may owe you at time of settlement stated above is unpaid, but such reserve may be held and applied by you against such indebtedness.

This agreement shall be irrevocable until all instruments purchased under this agreement by you from us shall have been paid in full to you, and shall inure to the benefit of and bind your and our respective heirs, personal representatives, successors and assigns and any company or organization subsidiary to or affiliated with you to whom you may assign this agreement and/or cause to purchase instruments from us as set forth here. We waive notice of nonpayment, repossession, acceptance of this contract by you and all other notices to which we might otherwise be entitled by law.